A company named PWC has been selected from Times 100 and it has been operating in UK. We will analyse how the organizational theory has been supporting the principles of organizing in this company. There have been a lot of changes in terms of the approaches that are used in development of the organization. This will answer all the sub tasks as per the organizational behaviour principles and theories.
Understand different approaches to management and leadership.
Under this task a discussion would be carried out on the various approaches to the leadership and management. We will also see how organizational theory has been underpinning the practice of the management and several approaches to management that are used by various organizations.
2.1 Compare the effectiveness of different leadership styles in different organizations.
Leadership is the most important attribute that is looked for in the leader of the company. There are many kinds of leadership styles that exist in various seniors and people working at the top management who are leading the teams. Based on the kind of leadership that is exhibited, the effectiveness and working of the team would be realized. The leadership styles seen in various companies are:
- Autocratic Style of Leadership – This is the style in which the leader acts as the decision making authority. He will instruct the team on the actions that have to be taken (Fincham & Rhodes, 2005). He will never give the decision making authority to some other member in the team. This kind of leadership style is used by companies that are basically the proprietorship concerns like: Proctor and Gamble and many construction or real estate companies. This style of leadership is effective when the employees do not have the expertise and the project has to be completed as per standards and within the timeline.
- Democratic/Participative Style of Leadership – This is the style of the leadership in which the leader asks and encourages the ideas, suggestions and proposals from the teams. He will then accordingly based on opinions and his own working take the final decision on the situation. He will always believe in taking the team together with their ideas and suggestions. PWC’s leaders mostly use this kind of leadership style. This enables them to keep the staff motivated and excited to work. This is effective when an organization is new and several actions have to be taken in expansion and diversification of the business of the company.
- Delegate Style of Leadership – This is the style in which the leader gives full onus, responsibility and accountability of the decision making to his team. He will not interfere unless the team requires him (Brunsson, 1985). Sometimes when PWC hands over the projects that are already given to the experienced professionals who are skilled then this delegate style of leadership is quite effective. This style is effective when the people appointed within the organization are highly skilled and expertise on carrying out their tasks.
Based on these styles, each and every leader functions differently in PWC. As per the situations there would be a fit by various leaders. In case a company would require for a new project to appoint a participative kind of a leader whereas the person has the qualities and attributes for an autocratic leader then he will spoil the whole situation. Similarly most of the IT companies are requiring the team leaders who are of Delegate Leadership Style. This is due to the reason that they want them to take their own decisions and be accountable for it. In such cases if autocratic leader is placed over the team then team will not perform well.
2.2 Explain how organizational theory underpins the practice of management.
The organizational theories are used in the practice of the management as these theories are derived from the experimental and practical scenarios in the organizations. When people strive to adopt these theories then they tend to achieve success in the jobs and day to-day operations. This could be explained with the help of an example: say in case a finance manager has to get the revenue doubled within the company then he has to use the set of theories and management practices adopted earlier. He may have to leave his personal principles and adopt the corporate policy as per the organizational theory in order to get the management and work done or practiced. The management practice is always linked with the theories that are developed and designed for an organization. Organizational Theory is derived from the organizational behaviour and motivation that has to be brought among the employees and staffs that are working for the company. Organizational Theory helps the management in deriving and creating the model for the working within the organization. These theories help the individual in achieving the goal and objective that they have set for themselves. In case a role is not able to get fulfilled then the individual can mould and develop his profile as per the required business. These theories give clarity on the working of the procedures, practices, rules and regulations and their successful implementation within the organization.
Therefore it is with the theory of the organization that the management will develop its policies and practices and standards could be designed and implemented. There are various kinds of organizational theories on motivation like Maslow’s Need Hierarchy and Vrooms Expectancy Theory which help in understanding the specific needs for the employees that have to be met and fulfilled by their employers so that they could remain satisfied and work with motivation on all the fronts. These theories help the management in understanding the facts and the aspects of the employee motivation and encouragement. These have to be taken care so that the association between the employees and the management is fruitful to the company.
2.3 Evaluate the different approaches to management used by different organizations.
There have been many kinds of approaches that are used by the management and different organization including PWC:
- Scientific Management Approach – This is said to be an approach in which work is carried out to achieve simplification, standardization and efficiency. This will help in getting the tasks done by a mutual coordination and understanding between the workers and the management (Vecchio, 2000). This is being followed by pharmaceutical companies.
- Classical Administration Approach – This approach was derived by Henry Fayol. This theory and approach is based on the 7 principles of management. This also exercises and displays the management as a set of training, planning, coordinating, organizing and commanding. This approach is followed by all kinds of organizations.
- Bureaucratic Approach – This is the approach of the management in which there are rigid, building of empire, self-perpetuating and impersonal kind of systems. In this the role and authority lies with that of the bureaucrats. This is used in the infrastructure companies.
- Socio-Technical Approach – This approach states that there is link between the technical, social and environment. These are linked and dependent on each other and have to function as per requirement. This is followed by most of the globalized and multi-national enterprises.
- Systems Approach – This is the system that imagines and considers organization as a set of inter-related systems and processes. This way the organization comprises of goals, processes and the components. This is among companies that have expansion and wings operating in more than one location.
- Contingency Approach – This is also referred as the situational approach. This considers as a link between the business environment and the various inter-related systems in the company. Based on various situations the actions are being taken.
All these approaches are exercised in various companies. As per the case PWC has been using mixed approach of the various approaches that are available on the management and its process. These approaches are used and help in coordinating and aligning the employees with that of the organization and people (Verbeke et al, 1998). All these approaches as a mix can also be implemented within the organization. The mix of these approaches help in adopting in many kinds of styles and working of the organization.
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PWC has been an organization that has got people who are using different leadership styles. They have been using the organizational theories in getting the management practiced. The company has been using various approaches to the management and aligning and linking the people with that of the goal of the organization. Organizational behaviour will have various implications and lead to the success of the company if the theories and principles are applied. Organizational Behaviour and related principles have helped PWC in getting itself expanded and diversified company in all the fronts.
Brunsson, N. (1985). The irrational organization: Irrationality as a basis for organizational action and change. John Wiley & Sons.
Fincham, R., & Rhodes, P. (2005). Principles of organizational behaviour. OUP Oxford.
Vecchio, R. P. (2000). Organizational behaviour: Core concepts (p. 338). London: Dryden Press.
Verbeke, W., Volgering, M., & Hessels, M. (1998). Exploring the conceptual expansion within the field of organizational behaviour: Organizational climate and organizational culture. Journal of Management Studies, 35(3), 303-329.
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